PG&E reports $3.36 billion loss for 2000


By the OGJ Online Staff

HOUSTON, Apr. 17, 2001—Reflecting the turmoil in the California electricity markets, PG&E Corp. Monday reported a 2000 net loss of $3.36 billion, the result of an aftertax charge of $4.1 billion related to costs from the state energy crisis.

The California utility holding company reported a net loss of $73 million in 1999, reflecting losses from discontinued operations. Revenue in 2000 rose to $26.23 billion, a 26% increase over the $20.82 billion reported in 1999.

Pacific Gas & Electric Co., the utility unit of PG&E, filed for bankruptcy protection Apr. 6 in a San Francisco federal court. Neither PG&E Corp. nor any of its other units were affected by Chapter 11 bankruptcy protection filing.

The utility unit accrued billions of dollars in wholesale power costs that it could not pass on to customers under a state freeze on retail rates. Most power suppliers have yet to be paid. Pacific Gas & Electric has a lawsuit pending against the California Public Utilities Commission seeking full recovery of the costs through an increase in retail rates.

Company executives had warned they were expecting the company to take the write off, which on a pretax basis amounted to $6.94 billion. PG&E Chairman Robert D. Glynn Jr. said taking the charge doesn't diminish the company's conviction its utility is entitled under law to recover these costs. If the costs are deemed recoverable, he said, the utility could reestablish these assets and recognize income in the future.

Not counting the charge and other nonrecurring items, PG&E said 2000 earnings from operations were $925 million, or $2.54/share, compared to $826 million, or $2.24/share in 1999.

In the 2000 fourth quarter, PG&E Corp. reported a net loss of $4.12 billion, compared to net loss of $611 million in the comparable 1999 period. Revenue for the 2000 quarter rose 68% to $8.08 billion, up from $4.8 billion in 1999.

The company's unregulated National Energy Group (NEG) contributed a sizable percentage of gains for the year and the quarter. Earnings from operations were $162 million, or 45 cents/diluted share, on revenues of $16.6 billion for 2000, compared with $63 million, or 17 cents/share, on revenues of $11.6 billion in 1999.

PG&E also said it and the utility continue to pursue multiple avenues for managing and resolving the California energy crisis, including legal action, negotiations with regulators and elected officials, and discussions with lenders and creditors.

Sponsored by FLSmidth

Related Articles

PGE’s Port Westward Unit 2 plant goes online

Portland General Electric Company (PGE) announced last Friday that its Port Westward Unit 2 plant went into service Dec. 30 of last year. The 220-megawatt (MW) natural gas-fired plant, located near Clatskanie, Ore., is highly efficient and designed for maximum flexibility in order to meet real-time fluctuations and integrate renewable resources.

Dominion acquires solar power facility in California

Dominion (NYSE: D) has closed on the acquisition of the 20-MW CID Solar Project, in King's County, California, from EDF Renewable Energy.

Follow Power Engineering on Twitter
Latest News

GAO looks at reliability impacts of changing power generation mix

The Government Accountability Office (GAO) on June 29 released a study provided a month befor...

On the day after MATS decision, Bernstein sees only a limited reprieve for coal units

In light of the U.S. Supreme Court ruling against the EPA's Mercury and Air Toxics Standards ...

Pence says Indiana will not comply with coal plant regulations

Indiana will not comply with President Barack Obama's plan to battle climate change by requir...

Westermost Rough offshore wind park enters operations

The 210-MW offshore wind power plant, Westermost Rough, has entered operations. The project w...

Duke Energy to upgrade energy storage system at Notrees Windpower Project

Duke Energy (NYSE: DUK), Samsung SDI and Younicos will work together to update Duke Energy's ...

Wisconsin Energy acquires Integrys, forms WEC Energy Group

Wisconsin Energy Corp. successfully acquired Integrys Energy - forming the WEC Energy Group (...

Regulator rejects Iberdrola plan to buy Connecticut utility

Connecticut regulators have taken a step toward rejecting a plan by Iberdrola, Spain's leadin...

Largest Southern Co. subsidiary enters rooftop solar market

The largest Southern Co. subsidiary will start selling and installing solar panels on homes W...

Power Engineering Current Issue

12/01/2014
Volume 118, Issue 12
1412pe-cover1
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

ZaZa Energy Reports Mid-Year 2015 Reserves and Operational Update

ZaZa Energy Reports Mid-Year 2015 Reserves and Operational Update

Range Announces Redemption Notice of 6.75% Senior Subordinated Notes Due 2020

Range Announces Redemption Notice of 6.75% Senior Subordinated Notes Due 2020

Black Gold Resources Acquires Stake in the 10 Well Income Joint Venture in Caldwell County, TX

Black Gold Resources Acquires Stake in the 10 Well Income Joint Venture in Caldwell Cou...

GlobalView Now Offers Exclusive Real-Time Delivery of Fast Weather Benchmark Data

GlobalView Now Offers Exclusive Real-Time Delivery of Fast Weather Benchmark Data

SafeWorks Acquires DualLift GmbH (DL)

SafeWorks Acquires DualLift GmbH (DL)

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>